The QR code payment industry has witnessed a remarkable surge in adoption globally, with estimates projecting a market value of USD$9.98 billion in 2022.
South Africa is no exception to this trend, as QR codes gain increasing popularity in the country’s payment landscape.
Pieter Roux, President of Payment Strategy at Ukheshe, highlights the growing demand for mobile payments, with an average of 12 million transactions per month facilitated by their Scan to Pay feature.
QR Codes: Empowering Digital Enablement
QR codes have emerged as a powerful tool for digital enablement, given their compatibility with almost any mobile handset equipped with a camera.
This accessibility allows almost anyone to scan a QR code, making it a user-friendly option for mobile payments.
Ukheshe’s Scan to Pay goes a step further by incorporating a built-in USSD (Unstructured Supplementary Service Data) element, easily recognizable through the 10-digit number displayed at the bottom of the QR code.
This addition of USSD is a significant advantage in South Africa, where many individuals are accustomed to dialing numbers that start with * and end with #.
The low barrier to entry provided by USSD makes it an ideal method for delivering mobile financial services, particularly for low-income customers, thereby promoting financial inclusion.
Benefits for Businesses and Consumers
QR codes offer significant benefits to both businesses and consumers. Businesses can easily present QR codes as a payment option on their websites, during e-commerce checkouts, or for face-to-face transactions.
This convenience sets QR codes apart from other digital payment options, which may be restricted to specific contexts or online environments. With the potential for broader acceptance points, businesses can accept payments through QR codes both online and at physical retail locations.
On the other hand, consumers enjoy greater flexibility in choosing how to make payments, including using their own banking apps.
Security and Trustworthiness
Security is a critical concern in the digital payments landscape. Ukheshe’s Scan to Pay QR boasts compatibility with bank applications, instilling trust among both merchants and consumers.
The inherent safety features of QR code transactions combined with the trustworthiness of banking apps create a robust protective framework for transactions.
Multiple security protocols, such as cross-verifying the origin of the phone number against the entered card number, ensure secure and reliable transactions.
Versatility and Industry-Specific Use Cases
QR codes present an array of possibilities and industry-specific use cases. From street vendors, micro-businesses, and restaurants to large supermarkets, petrol stations, and national service providers, QR payments extend beyond everyday purchases.
This technology enables easy payments for utilities, fines, taxes, and more. As QR codes become more convenient, prevalent, and cost-effective, they are likely to become the preferred method of trade, gradually outweighing the benefits of cash.
QR codes also sidestep challenges associated with accessing ATMs and mitigate the risk of theft during cash withdrawals, making them a powerful tool for breaking down barriers to full economic participation and promoting financial inclusion, especially for low-income earners.
Ukheshe’s Scan to Pay: A Leading QR Ecosystem in South Africa
Ukheshe’s Scan to Pay is the largest QR ecosystem in South Africa, widely embraced by millions of merchants and consumers.
Over 500,000 vendors, 14 banks, fintech companies, 94 payment service providers, and six acquirers have chosen Scan to Pay as their preferred QR payment platform.
This robust adoption underscores the platform’s reliability and effectiveness. Scan to Pay QR payment is available across all major banking apps in South Africa, and users can also download the Scan to Pay app on most mobile devices.
As the popularity of QR codes continues to soar, South Africa’s payment landscape is set for a transformation towards greater efficiency, inclusivity, and security.